The global economy is in distress. According to analysts at Reuters, it has stalled due to US President Donald Trump's lofty tariffs. No one knows when it will be able to pull itself out of the dire straits. Does this mean Trump’s tariffs are a bad decision? Time will tell. Most experts agree that the tariffs imposed by the White House leader are pushing down global economic growth, which for decades had been sustained by predictable and relatively free trade.

Against this backdrop, major multinational corporations and niche e-commerce players have sharply lowered their projected sales forecasts. Besides, many companies have issued warnings about job cuts and have moderated their previous business plans.

Meanwhile, global markets are overwhelmed by the doom and gloom. The world’s leading economies no longer expect the high GDP rates they once counted on. The market is gripped by uncertainty over the ongoing tariff standoff between the US and China. This is the main factor holding back global economic growth, experts stress.

Isabelle Mateos y Lago, chief economist at French bank BNP Paribas, defines Trump’s tariff policy as a serious challenge and “a shock to the world.” Moreover, due to the trade war he unleashed, American companies have begun hiring far fewer workers than before. Many firms even completely abandon plans to expand their workforce.

Other major economies are also facing turbulence. According to recent studies, manufacturing activity in China plummeted sharply in April 2025. Experts note that this is the fastest rate of decline in the past 16 months. The situation is no better in the United Kingdom, where export volumes have seen their steepest drop in five years. Most economists describe Trump’s tariff policy as a “demand shock” to the global economy. Experts warn it may drive up import prices and suppress business activity in other countries as well.